Lending Increases in July
Latest debt statistics reveal both unsecured and secured credit has risen in July, meaning the average amount owed per person is £29,839.
According to money education charity Credit Action, July painted a mixed picture as the number of people out of work for over a year had fallen but the average amount owed per person, including mortgages, had risen.
Total UK personal debt at the end of May stood at £1,452 billion and the twelve month growth rate remained unchanged at 0.8 percent.
Lending in May rose by £1.3 billion with secured lending increasing by £1.1 billion in the month, and consumer credit by £0.2 billion.
“July’s debt statistics show a mixed picture – one piece of good news is the number of people out of work for more than 12 months has fallen by 29,000, certainly bringing relied to those people as they look to budget,” said Joanna Parsley, Credit Action associate director.
“It’s important that with outstanding debts, consumers are looking to clear balances as soon as possible, so they are not paying unnecessary interest to avoid seeing even less of their valuable incomes.”
The average household debt excluding mortgages stands at £8,076 which increases to £15,531 if the average is based on the number of households who actually have some form of unsecured loan.
It can be useful to use a prepaid card to help those in debt budget so they do not overspend and can repay some of what they owe.
The Freedom Pay As You Go card costs just £5.99 to purchase with no credit check needed and no monthly charges for owning or using the card, but a 50p transaction fee and ATM charges are set at 1.5 percent.
A prepaid card does not have an overdraft so the user can only spend the money they load onto it.